This unit is concerned with the formulation and implementation of macroeconomic policy. Topics include: measurement of the business cycle, inflation targeting, monetary policy rules, the cash rate as the instrument of monetary policy in Australia and how it is set, the impact of economic shocks and the appropriate policy response in both a closed and open economy setting, economic bubbles and the stock and housing markets, the fiscal outlook and public debt and the role of technology and ideas in generating rising living standards. Short-run economic policy will be discussed in the framework of the AD-AS model with an interest rate rule. A version of Romer's model that emphasises the role... -- Course Website
Instructor: Professor Lance Fisher
Prerequisites: (ECON201 or ECON204) and (ECON232 or ECON241)
